VIVUS (VVUS) Sell Off Overdone; Wells Says All Drugs Have Abandonment, Co-Pay Issues

VIVUS, Inc. (Nasdaq: VVUS) continues to trade over 20 percent lower following the pharma's conference call and third-quarter results today. But, not everyone's convinced that the drop is warranted.

Though the firm still has some concerns, Wells Fargo analyst Michael Tong sees today's action in VIVUS as "overdone."

Mainly, Tong sees investors concerned with the 30 percent prescription rate abandonment that management mentioned on the call. He notes that Wells already priced in the cash-pay status for Qsymia and that all drugs have some prescription abandonment.

Other concerns may include "somewhat lower Rx totals (5,560 prescriptions and 3,504 unique patients to date) than anticipated" and the average co-pay of $62 for patients.

The firm maintains a Market Perform for VIVUS, with a valuation range of $21 to $23.

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